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Buying your first home does not have to be overwhelming. This is your complete guide to navigating the process in Virginia, from checking your credit to picking up the keys.
Seven steps between where you are now and the keys to your first Virginia home.
Pull your credit report from all three bureaus (Experian, Equifax, TransUnion) and review your score. Most Virginia lenders want a minimum 580 for FHA and 620 for conventional loans. Dispute any errors before you apply.
Meet with a lender to get a pre-approval letter. This tells you exactly how much home you can afford and shows sellers you are a serious, qualified buyer. Shop at least two or three lenders to compare rates.
Partner with a buyer's agent who knows your target Virginia market. Your agent advocates for you, not the seller. In most Virginia transactions, the seller pays the buyer agent commission.
Your agent sets up custom MLS alerts based on your budget, location, and must-haves. Tour homes, take notes, and narrow your list. A good agent will flag potential issues before you fall in love with a property.
When you find the right home, your agent writes a competitive offer backed by local market data. In Virginia, your offer will include contingencies for financing, inspection, and appraisal to protect you.
Hire a licensed Virginia home inspector to evaluate the property. Your agent negotiates repairs or credits based on the findings. Never skip the inspection, even on newer homes.
Virginia requires a settlement attorney (not just a title company) to handle closing. You will do a final walk-through, sign your documents, and receive the keys. The entire closing process typically takes 30 to 45 days from accepted offer.
Virginia offers some of the best first-time buyer assistance in the country. Here are the programs your Settle agent will help you explore.
The Virginia Housing Development Authority offers competitive fixed-rate mortgages for first-time buyers with income and purchase price limits. Combine with down payment assistance for maximum savings. Available statewide through approved VHDA lenders.
VHDA offers DPA grants of up to 2-2.5% of the purchase price that do not need to be repaid, plus optional second mortgages for additional assistance. Some Virginia localities offer their own DPA programs on top of state programs. Check with your county or city housing office.
Federal Housing Administration loans allow 3.5% down with a credit score of 580 or higher. FHA loan limits in Virginia vary by county, ranging from $524,225 in most areas to $1,149,825 in Northern Virginia (Fairfax, Arlington, Loudoun). A strong option for buyers with limited savings.
Available to active-duty military, veterans, and eligible surviving spouses. Zero down payment, no PMI, and competitive rates. Virginia is home to several major military installations including Fort Barfoot, Joint Base Langley-Eustis, Naval Station Norfolk, and Quantico. VA loans have no official loan limit for eligible borrowers with full entitlement.
Zero down payment loans for homes in USDA-eligible rural areas of Virginia. Many areas outside of major metro centers qualify, including parts of the Shenandoah Valley, Southside Virginia, and the Eastern Shore. Income limits apply based on household size and county.
Not all mortgages are equal. Compare the four main loan types available to Virginia first-time buyers.
Estimate your monthly mortgage payment based on home price, interest rate, down payment, and loan term. See how different scenarios affect what you pay each month.
Estimate your monthly P&I, taxes, insurance, and HOA with Virginia-specific defaults built in. Compare conventional, FHA, VA, and VHDA scenarios side-by-side.
Open the CalculatorAvoid the most expensive errors new buyers make. Your Settle agent will keep you on track, but knowing these upfront gives you an edge.
Without a pre-approval, you do not know your real budget, and sellers will not take your offer seriously. In competitive Virginia markets, offers without a pre-approval letter are often rejected outright.
You need reserves after closing for moving costs, repairs, furniture, and emergencies. A good rule is to keep at least 3 months of expenses in savings after you close. Down payment assistance programs can help you keep more cash in reserve.
Even in a competitive market, never waive the inspection. A $400-$500 inspection can uncover thousands of dollars in hidden problems. Virginia homes can have issues with foundations, radon, well water, and septic systems depending on the area.
Do not buy a car, open new credit cards, or make large purchases between pre-approval and closing. Lenders pull your credit again before settlement, and any changes can delay or kill your loan.
Virginia requires a settlement attorney (not just a title company) to handle real estate closings. You will also encounter the grantor tax, recordation tax, and potentially local transfer taxes. Budget 2-5% of the purchase price for total closing costs.
Check commute times, school ratings, flood zone maps, HOA rules, and future development plans. What looks like a quiet street today could be next to a planned highway expansion or commercial zone. Your Settle agent will research these factors for you.
Tell us where you are in the process and a Settle first-time buyer specialist will reach out within 24 hours.
What happens after you reach out
We discuss your goals, budget, timeline, and any questions about the buying process. No commitment, no pressure.
We connect you with trusted Virginia lenders, review VHDA and DPA programs you qualify for, and set up your custom home search.
Your agent schedules tours, writes competitive offers backed by local market data, and negotiates on your behalf.
We coordinate inspections, appraisals, title work, and walk-throughs. You get the keys with zero surprises.
It depends on the loan type. FHA loans require as little as 3.5% down. Conventional loans start at 3% for first-time buyers through programs like Fannie Mae HomeReady. VA loans offer 0% down for eligible military members. USDA loans also offer 0% down in qualifying rural areas. Virginia Housing (VHDA) programs can provide additional down payment assistance grants and second mortgages to reduce your upfront costs even further.
Minimum credit score requirements vary by loan type. FHA loans typically require a 580 score for the 3.5% down payment option (500-579 requires 10% down). Conventional loans generally need a 620 or higher. VA loans have no official minimum, but most lenders require at least 620. The higher your score, the better your interest rate will be. If your score needs work, your Settle agent can connect you with credit counseling resources.
VHDA (Virginia Housing Development Authority) is a state agency that helps Virginians achieve homeownership. Their flagship programs include Virginia Housing Plus (a competitive-rate mortgage for first-time buyers), down payment assistance grants up to 2-2.5% of the purchase price, and closing cost assistance. Income and purchase price limits apply and vary by county. Your Settle agent will check your eligibility and walk you through the application.
Closing costs in Virginia typically run 2% to 5% of the purchase price. Virginia has some unique costs including the grantor tax (seller pays, but negotiable in some cases), recordation tax, and the requirement to use a settlement attorney rather than just a title company. On a $350,000 home, expect roughly $7,000 to $17,500 in total closing costs. VHDA closing cost assistance and seller concessions can help offset these expenses.
In most Virginia markets, buying builds equity and provides long-term stability that renting cannot. Monthly mortgage payments on a starter home are often comparable to rent, especially with today's assistance programs. The key factors are how long you plan to stay (at least 3-5 years is ideal), your financial readiness, and local market conditions. Your Settle agent can run a rent-versus-buy analysis specific to your situation.
Many first-time buyer programs in Virginia define 'first-time buyer' as someone who has not owned a home in the past three years. So even if you owned a home previously, you may still qualify for VHDA programs and FHA first-time buyer benefits. Veterans can use VA loans regardless of prior ownership. Your Settle agent will review your specific situation and identify every program you qualify for.
The full timeline varies. Getting pre-approved takes 1-3 days. Searching for a home can take anywhere from a few weeks to a few months depending on the market and your criteria. Once your offer is accepted, closing typically takes 30 to 45 days. In competitive Virginia markets like Northern Virginia, having your pre-approval ready and acting quickly on new listings can make the difference.
Beyond your monthly mortgage payment, budget for property taxes (Virginia rates vary by locality, typically 0.7% to 1.2% of assessed value annually), homeowner's insurance, HOA fees if applicable, and maintenance (a good rule is 1% of home value per year). If your down payment is under 20%, you will also pay private mortgage insurance (PMI) on conventional loans or a mortgage insurance premium (MIP) on FHA loans.
Our free PDF covers pre-approval, VHDA programs, down payment assistance, inspection checklists, closing cost breakdowns, and everything else Virginia first-time buyers need to know. Delivered straight to your inbox.
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